Lorraine Williamson
Rental prices in Spain have continued to escalate, with the latest figures showing a 9.9% year-on-year increase in May 2025. The data, published by real estate platform Idealista, highlights a growing imbalance between supply and demand in the Spanish housing market.
The national average rent now stands at €14.50 per square metre—a record high. This is despite several attempts by the government to stabilise the market through regulatory interventions.
Fewer homes, higher prices
Experts point to a shrinking rental stock as one of the key drivers of the price surge. Real estate agent Laura Gómez noted that since the beginning of 2024, the regular rental supply has dropped by 36%. Over the same period, demand rose by 26%, creating a highly competitive environment for tenants.
Antonio Ruiz, a property analyst, says some legislation may have had unintended consequences. “Rent caps can lead to landlords withdrawing properties from the market,” he said. “When supply falls, prices inevitably rise.”
Demand fuelled by migration and ownership costs
Several factors are contributing to rising demand. Migration flows into urban centres and the growing inaccessibility of home ownership are forcing more people to rent. For many families and young professionals, buying a property is no longer a viable option.
Calls to increase housing supply
Economic consultant María Fernández believes the solution lies in boosting housing stock. She suggests that expanding social housing, easing building regulations, and introducing incentives for landlords could help stabilise the market.
“Policies should support landlords who make properties available, not discourage them,” she said.
Big city rents remain highest
Barcelona continues to top the list of Spain’s most expensive cities to rent, with an average cost of €23.90 per square metre. Madrid follows at €21.70, while San Sebastián remains high at €18.50. Other cities like Valencia, Málaga, and Bilbao also recorded rent increases of around 10% over the past year.
Where are rents rising fastest?
The cities with the highest year-on-year rental increases include:
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Zamora: +15.2%
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Ávila: +14.9%
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Castellón de la Plana: +14.6%
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Santa Cruz de Tenerife: +14.3%
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León: +12.8%
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Ciudad Real: +12.3%
Meanwhile, rent increases were more modest in Huesca (+1.3%), Huelva (+3.3%), Lleida (+3.6%), and Jaén (+4.1%). The only cities where rents fell were Girona (-2%) and Cuenca (-1.8%).
Pressure mounts on tenants
Rising rents are making it increasingly difficult for many people to secure affordable housing. With more tenants competing for fewer properties, the current measures may not be enough to bring relief.
Whether future policy changes can ease the situation remains to be seen.
Source: LaRazon